Nokia has begun directly selling its own mobile handsets to FarEasTone's 300 retail stores in Taiwan since mid-July. This is the largest alteration Nokia has made on its channel network on the island. A partner logistics and distribution company will both distribute handsets to retail sites and collect damaged handsets for maintenance services.

 

Considering logistics and after sales services, most mobile handset makers, whether foreign or domestic, have chosen to let agencies distribute their phones. Even those who hope to expand profit margins by cutting back on agency reliance, still abstain from direct distribution. To avoid large price fluctuations on the market, the few handset makers now shipping to telecoms usually offer price protection, giving them more flexible inventories and cash flow.

 

Whether or not Nokia's new strategy will make it vulnerable to price fluctuations or impact channel players will call for close monitoring. Handset makers such as Motorola, agencies including Synnex, Senao, and Aurora, as well as telecoms Chunghwa Telecom and Taiwan Mobile are keeping an eye on possible influences the alteration may bring.